Argentina 1967-70: a stabilisation attempt that failed
Keywords:Argentina, inflation, stabilisation, policy, structuralist-monetarist controversy
Between 1950 and 1966 prices in Argentina rose at an average annual rate exceeding 25 percent. There have been several attempts to stabilise the situation, notably in 1966 when the military government took command. This attempt appeared to have considerable initial success, however, by 1970 the inflation rate began to accelerate again. This article describes the nature and characteristics of the stabilisation policy pursued in 1967-69. The author explains why, despite its initial success, in the end it broke down. Implications for the structuralist-monetarist controversy are then drawn. Finally, some conclusions that can be drawn for long-run development strategy and short-run stabilisation policy in Argentina are suggested.
JEL: E31, E52, E60